There has been a collapse in the price of AV.A from over 175p to 118p and similar falls in respect of AV.B and RSAB.L following Aviva’s shocking declaration that they intended to take steps to retire their cumulative irredeemable preference shares. It would seem that the skills of Mark Taber will be called on again to assist those seeking stable fixed dividends with minimal risk from being shafted by slick legal legerdemain on the part of another institution whose business relies on the assumption that they can be trusted.

As Mark Taber has tweeted it has not previously been doubted by professionals involved in the fixed interest market that cumulative and irredeemable ment just that and the preference share price has prior to Aviva’s announcement reflected this understanding.

Does the current pref price collapse in fact present an opportunity?

No help of course may be expected from the useless FCA.

Finish reading with a 14 day trial

or Unlock with your email

Already have an account?
Login here